McCormick & Company, Incorporated

WBAG:MKC Stock Report

Market Cap: €19.1b

McCormick Valuation

Is MKC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MKC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MKC (€71) is trading below our estimate of fair value (€113.77)

Significantly Below Fair Value: MKC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MKC?

Key metric: As MKC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MKC. This is calculated by dividing MKC's market cap by their current earnings.
What is MKC's PE Ratio?
PE Ratio25.5x
EarningsUS$792.60m
Market CapUS$20.21b

Price to Earnings Ratio vs Peers

How does MKC's PE Ratio compare to its peers?

The above table shows the PE ratio for MKC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.7x
AGR AGRANA Beteiligungs-Aktiengesellschaft
26.8xn/a€696.8m
MAN Josef Manner & Comp
29.6xn/a€204.1m
TSN Tyson Foods
28x22.5%US$22.4b
2802 Ajinomoto
34.3x11.9%JP¥3.1t
MKC McCormick
25.5x5.8%€20.2b

Price-To-Earnings vs Peers: MKC is good value based on its Price-To-Earnings Ratio (25.5x) compared to the peer average (29.7x).

Price to Earnings Ratio vs Industry

How does MKC's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MKC 25.5xIndustry Avg. 13.3xNo. of Companies18PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MKC is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is MKC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MKC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MKC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MKC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€71.00
€78.30
+10.3%
9.4%€88.67€61.88n/a16
Nov ’25€72.62
€78.30
+7.8%
9.4%€88.67€61.88n/a16
Oct ’25€75.42
€74.14
-1.7%
11.5%€85.82€54.20n/a16
Sep ’25€71.98
€68.82
-4.4%
10.8%€84.15€54.29n/a16
Aug ’25€71.28
€69.30
-2.8%
10.0%€85.49€55.16n/a16
Jul ’25€65.82
€70.08
+6.5%
10.2%€86.82€56.01n/a16
Jun ’25€66.06
€70.10
+6.1%
10.0%€85.76€57.80n/a16
May ’25€71.24
€71.19
-0.07%
10.0%€86.58€58.35n/a17
Apr ’25€71.42
€68.98
-3.4%
10.7%€85.28€52.84n/a17
Mar ’25€62.68
€65.67
+4.8%
11.1%€80.40€52.67n/a17
Feb ’25€62.72
€65.69
+4.7%
11.4%€80.04€52.44n/a16
Jan ’25€61.76
€67.56
+9.4%
10.8%€78.80€53.44n/a16
Dec ’24€60.12
€69.97
+16.4%
11.0%€81.29€55.13n/a15
Nov ’24€61.24
€70.87
+15.7%
11.1%€82.41€55.88€72.6215
Oct ’24€71.70
€80.43
+12.2%
12.7%€94.62€59.61€75.4215
Sep ’24€75.26
€79.29
+5.4%
14.1%€91.95€57.93€71.9813
Aug ’24€81.02
€77.76
-4.0%
13.9%€90.87€57.25€71.2814
Jul ’24€79.92
€77.31
-3.3%
14.5%€91.64€57.73€65.8214
Jun ’24€80.76
€72.34
-10.4%
12.4%€90.76€58.95€66.0613
May ’24€78.08
€71.24
-8.8%
13.5%€88.42€57.42€71.2413
Apr ’24€76.06
€71.32
-6.2%
12.4%€89.48€58.12€71.4213
Mar ’24€68.29
€69.41
+1.6%
12.3%€83.37€57.43€62.6813
Feb ’24€68.79
€68.74
-0.07%
12.1%€82.83€57.06€62.7213
Jan ’24€78.72
€74.25
-5.7%
12.5%€89.64€58.50€61.7613
Dec ’23€81.80
€76.08
-7.0%
13.1%€92.72€59.88€60.1213
Nov ’23€79.75
€78.63
-1.4%
12.5%€97.40€62.91€61.2412

Analyst Forecast: Target price is less than 20% higher than the current share price.

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